Thursday, December 17, 2009

What is the cause of large and continuing budget deficits? The Bush tax cuts,
the wars in Iraq and Afghanistan, and the economic downturn explain "explain
virtually the entire deficit over the next ten years."

Notice the tiny contribution of Tarp, Fannie, and Freddie (shaded red) and the stimulus package (shaded yellow, just below the red area) to the deficit from 2012 onward. These are not the source of our long-term budget problems.

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"President Obama Largely Inherited Today’s Huge Deficits"

What is the cause of large and continuing budget deficits? The Bush tax cuts,
the wars in Iraq and Afghanistan, and the economic downturn explain "explain
virtually the entire deficit over the next ten years."

Notice the tiny contribution of Tarp, Fannie, and Freddie (shaded red) and the stimulus package (shaded yellow, just below the red area) to the deficit from 2012 onward. These are not the source of our long-term budget problems.